[Moneyguy1]

Curt:

That is at least one of the problems. The "average" homeowner will believe an appraiser. After all, why not? They are supposed to be the experts. Now...when the "banker" is in on the "fix" along with the "appraiser", many times the dumb ba$tard in the middle makes stupid mistakes. Besides, three years ago, real estate was skyrocketing, giing the great unwashed to believe their home actually had increased in value that much. His basic problem was going for the 3 yr ARM.

The mortgage industry has a large number of very bad people in it. However, happily, the current climate will thin their ranks as well as the ranks of real estate agents (down over 10% so far). Let the honest agents, both in real estate and in financing prevail, both realizing there is an ethical component to the business.

Friends of mine, staying with me for a while, are buying down here. They put a bid in on a nice little retirement home (1400 sq ft, 2 car garage, 2 insulated big porches outside the main house, not included in the square footage). Their bid was for 9% under the asking price and was accepted immediately. And, the asking price had been dropped twice in the six months the home was on the market. And to think 2 - 3 years ago, homes were sold around here even before the listing hit the system!!